Exercise 15-3 Analysis of cost flows LO C2, P1, P2, P3 As of the end of June, th
ID: 2425011 • Letter: E
Question
Exercise 15-3 Analysis of cost flows LO C2, P1, P2, P3 As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs. Direct materials Direct labor Job 102 Job 103 Job 104 $ 30,000 $47,000 $ 49,000 13,000 28,900 39,000 Overhead applied 4,290 9,537 12,870 in May: direct Job 102 was started in production in May and the following costs were assigned to it materials, $13,000; direct labor, $2,800; and overhead, $924. Jobs 103 and 104 are started in June Overhead cost is applied with a predetermined rate based on d finished in June, and Job 104 is expected to be finished in July. No raw materials are used indirectly in June. Using this information, answer the following questions. (Assume this company's predetermined overhead rate did not change across these months.) irect labor cost. Jobs 102 and 103 are 182. Complete the given below table to calcutate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs? Direct Materials: May June 102 103 104 0 0 0 Direct Labor June Total 102 103 104 TotalExplanation / Answer
Answer
Answer (1) and (2)
Direct Materials
Figures in $
Job
May
June
Total
102
13000
17000
30000
103
0
47000
47000
104
0
49000
49000
Total
13000
113000
126000
Direct labor
Figures in $
Job
May
June
Total
102
2800
10200
13000
103
0
28900
28900
104
0
39000
39000
Total
2800
78100
80900
Answer 3
Predetermined Overhead Rate
Figures in $
Job
Numerator
Denominator
Overhead rate as % of direct labor
Overhead
Direct labor
102
4290
13000
0.33
104
12870
39000
0.33
Answer 4
Total Cost table
Figures in $
Job
Direct Material
Direct Labor
Applied Overhead
Total Cost
Cost transferred to finished goods
102
30000
13000
4290
47290
47290
103
47000
28900
9537
85437
85437
104
49000
39000
12870
100870
0
Total
126000
80900
26697
233597
132727
Direct Materials
Figures in $
Job
May
June
Total
102
13000
17000
30000
103
0
47000
47000
104
0
49000
49000
Total
13000
113000
126000
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